First Milk, a UK-based dairy producer, has unveiled plans to close its cheese packing plant in Marchwiel, Wrexham, while putting 231 jobs at risk.
The plant is scheduled to shut in May 2014, and this move comes as the company lost a major contract from Asda. Consultation with staff will follow shortly.
The company said that the facility was no longer economically viable for the business to keep the site at Maelor operational.
A First Milk spokesman said that the company very much regrets the need to make the proposal to close Maelor operation.
He added, "We have a hard-working, loyal and committed workforce there and we are aware of the impact that this news will have on them.
"We have already briefed the Trade Unions at national and local level and have committed to work closely and constructively with them over the coming weeks and months."
Wales Secretary of State David Jones said the news that there may be a significant number of job losses at the First Milk site in Wrexham will cause a great deal of concern to the workers, families and communities affected.
Jones added, "The Wales Office is in close communication with the company and we are committed to working with the Welsh Government to offer all the support we can at this difficult time.
"This is a sobering reminder of the challenges the Welsh economy still faces."
First Milk is currently in talks with Danish firm Arla, which now has the Asda contract, to employ the closure-affected staff, reported the BBC.
The company will continue to operate creameries in Wales, England and Scotland.
Image: First Milk said that Maelor facility was no longer economically viable for the business. Photo courtesy of Stephanie Berghaeuser.
